XYZ Company Has an Inventory Turnover of 20 Times Per

question 44

Multiple Choice

XYZ Company has an inventory turnover of 20 times per year.The industry average is 5.0 times per year.What does a high inventory turnover mean?

• A)The company has too much inventory on hand.
• B)The company may have obsolete inventory on hand.
• C)The company may not be keeping enough inventory on hand which can lead to lost sales.
• D)The company is having a difficult time selling the inventory.

---

Definitions:

Two-Way Format

A method of communication or interaction that involves active participation and exchange of information between two parties.

Key Information

Essential or crucial data or facts that are important for decision-making, understanding a situation, or solving a problem.

Identify And Reply

The process of recognizing a message or request and providing a corresponding response.

Body Language

Involves the use of physical behavior, expressions, and mannerisms to communicate nonverbally, often reflecting the speaker’s feelings and attitudes.